The World Bank Group works with countries in Europe and Central Asia to help improve people's lives and achieve shared prosperity in a variety of ways, including through financial lending and analytical and advisory services. Our work aims to help countries achieve better competitiveness, more inclusive growth, and to adapt to climate change and improve energy efficiency.
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An interview with Laura Tuck, World Bank Vice President for Europe and Central Asia, by Nurlana Quliyeva, Region plus, Baku.Azerbaijan's cooperation with the World Bank began almost immediately after ... Show More +it gained its independence. The fruitfulness of this collaboration can be seen in major projects implemented jointly. Over the past 20 years, the country has been allocated loans for 54 projects totalling 3.9bn dollars. In addition, the World Bank readily advises the government of Azerbaijan on various economic issues and conducts various studies, identifying strengths and weaknesses in the economic development of the country and making recommendations for the further improvement of the situation.It is no accident that Azerbaijan was selected as one of three pilot countries in Europe and Central Asia, where the World Bank will build its strategy in the new format - not as part of the Strategy, but as part of the Country Partnership Framework. Work on this document is being completed.It is precisely the successful experience of cooperation and new directions reflected in the strategy that were discussed during the first visit to Baku by the World Bank Vice President for Europe and Central Asia Laura Tuck. In an interview with R+, Mrs Tuck revealed further details of the visit, as well as World Bank forecasts on the economic development of Azerbaijan.Region plus: The World Bank recently revised its forecast for economic growth prospects for Europe and Central Asia in the context of the current situation in the region, including the Ukrainian crisis. How serious do you think concerns are about the impact of the situation in the region on Azerbaijan's economy in the short and medium term?Laura Tuck: Forecasts for economic growth in Azerbaijan are largely formed under the influence of the global economic situation and internal conditions in the country. And to a lesser extent they are related to political events. As you know, the World Bank believes that the outlook for economic growth in Azerbaijan in 2014 will be 4.5 per cent (5.2 per cent previously forecast - editor), which is mainly due to the decline in oil production in the country. In this regard, forecasts for the non-oil sector of Azerbaijan are lowered, because the decline in revenues from the sale of oil affects the reduction of government spending, which in turn affects the expected results of the non-oil sector.For the next year the economic growth forecast has been lowered insignificantly - to 4 per cent. The reason is the same - continued decline in oil production. At the same time, given the forecasts on relatively low economic growth in the world, we expect a slump in the overall demand for oil in the coming year as a whole, which also affects the price of this type of fuel, keeping it at a low level.Regarding the impact of the Russian-Ukrainian crisis on economic processes in Azerbaijan and in the region, today it is difficult to outline the full picture. On the one hand, the decline in economic growth in Russia will lead to a decline in Azerbaijan's exports to this country. And on the other - 86 per cent of the revenues Azerbaijan receives from export operations is the sale of oil and gas, which are traded on the markets of different countries. Russia occupies an important position in the structure of the country's non-oil export, and the decline of the rouble and the cheapening of the Kazakh tenge may adversely affect the competitiveness of Azerbaijani goods.Also, the situation with the Russian currency may affect the level of remittances to Azerbaijan, but there are little global concerns here because their volume is only 2 per cent of the GDP of your country. But at the same time, Azerbaijan can benefit from the ban on the import of certain products to Russia from the US and Europe and expand agricultural exports to this country. As we can see, there are several options for the impact of the political crisis on the economy of Azerbaijan, and today it is hard to say which of them will dominate in the long run. In any case, I think the impact will be negligible.Region plus: The portfolio of the World Bank in Azerbaijan encompasses many areas - from infrastructure to education, from health care to real estate registration. What projects can be considered the most successful today?Laura Tuck: The World Bank has been cooperating with Azerbaijan for more than 20 years, and over these years we have advised the government a lot on a variety of issues, conducted studies, carried out analytical work, provided technical assistance, etc. The current portfolio of the World Bank for the country now stands at 2.8bn dollars and covers 18 projects. This year, as you know, credit agreements have been signed for three projects totalling 300m dollars, and two more projects are expected to be approved in the next few months.As for the project that pleases me the most, the World Bank, selecting projects, primarily pays attention to their cost-effectiveness and coverage of as many people in need of help and support as possible. And at the same time, they meet the government's plans within the framework of the development concept "Azerbaijan 2020: A Look into the Future".For example, we supported the government in the preparation and implementation of the programme of targeted social assistance, which helped solve the problem of poverty for many families. While in Baku, I visited an area where a project on solid waste management is being implemented today, and I was a witness to how successfully this issue has been resolved. Earlier, waste accumulated in the open countryside, where it often spontaneously caught fire, which had an extremely negative effect on the environment and human health, and today in this area - there is a modern enterprise with high technology, waste recycling is under way and the area is being landscaped.We also met with participants in the Azerbaijan Rural Investment Project (AzRIP), and they told us about the real help that was provided within the framework of the project, particularly in the construction of roads, water supply, creation of medical points, etc. That is to say the form of the project where rural communities chose necessary land plots for investment turned out to be very successful, which ultimately influenced the strengthening of communities. They became convinced that they could eliminate problems themselves and change their lives for the better.During my visit, I also visited a very "smart" courthouse in Baku, where work is organized using modern technology, the process of court hearings has been enhanced and various training sessions are conducted for judges and key staff, which certainly has a positive effect on the reforms in the field of justice and respect for the legitimate rights of citizens. It was very pleasant to observe that the work is organized using the best international practices.Region plus: As you know, the World Bank is preparing a new strategy of cooperation with Azerbaijan. Which direction will be the priority in it? Did you discuss any WB plans on the country during your visit to Baku, in particular at the meeting with President Ilham Aliyev?Laura Tuck: At the meeting with President Ilham Aliyev, we agreed on the process of identifying areas of cooperation and the priorities of the new strategy. Of course, we intend to cooperate in the areas identified in the development concept "Azerbaijan 2020: A Look into the Future" and other priority programmes of the government. On the other hand, the World Bank is conducting studies to identify the measures and concrete steps that can facilitate the transition of part of the population from the category of low-income families to the middle class category. The results of this analytical work will be ready in December 2014, after which we will hold broad discussions on the strategy of cooperation with the government, representatives of civil society, business community and partner organizations. After coordination, the document will be approved.I should note that President Ilham Aliyev and I discussed many new ideas that still need further elaboration and comprehension.Region plus: The World Bank recently issued a new Doing Business report, according to which Azerbaijan joined the world's top ten countries by the number of reforms. How do you assess the achievements of Azerbaijan? Which problems still need to be addressed to improve the business climate in the country? Is the World Bank ready to help the government in this field?Laura Tuck: I should note that we are also pleased to see Azerbaijan among advanced countries by the number of reforms this year. Your country has risen from 88th place in ranking to 80th among 189 nations. As for the assessment of the reforms, three main areas were considered here - the simplification of procedures for starting a business using electronic signatures for the registration of enterprises, the introduction of online services in the field of real estate registration and the simplification of the payment of social insurance fees. That is to say in indicators studied by the World Bank, Azerbaijan has conducted 21 reforms since 2005, including reducing the time to start a new business from 113 days to five, which corresponds to the situation in Canada, reducing the time for the payment of taxes from 756 hours to 195 hours per year, etc.As for problems, of course, there are areas that still need work. For example, for starting construction work it is necessary to go through 21 administrative procedures, which is the highest indicator in Europe and Central Asia. Also, 164 days are required for connecting to the power grid, and this is one month longer than the same regional indicator. The World Bank holds consultations with the government and the business community to improve these procedures.At the same time, I would like to note the establishment of the ASAN Service among successful government reforms. I visited one of its offices in Baku and I want to say that the success of this service really left a very positive impression. We would very much like to see it expand its activities both geographically and according to the list of services provided. If the government turns to us with relevant offers, we will gladly render the necessary support. However, as I have already noted, the World Bank is ready to support the government in other areas as well, specifically in the development of the financial and banking sector, on which we conducted extensive discussions with the chairman of the Central Bank, Elman Rustamov.We can also advise on all other positions of the Doing Business report, on which Azerbaijan has relatively low results, and share the experience of countries with the best performance. In addition, we are ready to help fill the financial gap that took shape in the oil sector due to the decline in oil revenues by attracting private investment.First published in Region plus on 11 November, 2014. Show Less -

Innovation is a critical driver of long-term economic growth in any country. This is particularly true for relatively new entrants into the European Union (EU), including Bulgaria, Croatia, Poland, an... Show More +d Romania. Stimulating innovation can stimulate growth and competitiveness while simultaneously helping countries advance their potential at the technology frontier. This feat, however, requires both a policy environment and investments that are multi-pronged – allowing for replication of successes from around the globe, as well as adaptation to specific country contexts.The World Bank has been engaged with Central European countries to help them unlock their potential on the innovation front. One example is Poland, a high income country with substantial innovation potential. Poland has been hampered in reaching its potential due to inefficient use of financial resources to spur innovation, insufficient involvement of the private sector, and weak monitoring and evaluation of impact of investments in the innovation sphere. With nearly €10 billion in EU structural funds earmarked specifically for improving Poland’s innovation outcomes over the 2014-2020 financing period, the government is developing new strategies to help ensure the overall efficacy of new and ongoing innovation initiatives by deploying multiple financial instruments, upgrading its research infrastructure, and building strategic international partnerships. As part of this, Poland’s Ministry of Regional Development also engaged the World Bank through Reimbursable Advisory Services to develop a review of strategic and operational documents that can guide the country’s national and regional innovation policy until 2020, based on the European Commission’s new smart specialization concept. The government of Poland is using insights from the World Bank’s Review of National and Regional Research and Innovation Strategies for Smart Specialization in Poland to strengthen its system of support for innovation.In Croatia, through a series of Science and Technology Projects, the World Bank has been assisting the government to absorb EU funds for research and innovation more effectively by working with selected public sector organizations to strengthen their capacity and stimulate demand from the business and scientific communities for available funds. The first Science and Technology Project was designed to strengthen Croatia’s innovation potential and increase its competitiveness by supporting research and development programs managed by the Business Innovation Croatian Agency (BICRO) and the Unity through Knowledge Fund. The Bank also assisted public research organizations to commercialize their research and improve collaboration with the business sector.The second Science and Technology Project is helping those involved in research and innovation, including public research institutions, scientific communities, high performing scientists, and young researchers, to benefit fully from EU accession by increasing their capacity to apply for and implement EU-funded projects. The project fosters the collaboration with the scientific diaspora in order to raise the quality of scientific research in Croatia, to contribute to the creation of new values in the Croatian economy, and to raise the scientific infrastructure in Croatia. In addition to promoting research excellence and integration into the European Research Area, the project provides grants and loans to early stage research and development activities.In addition to supporting Poland and Croatia’s efforts, the World Bank recently joined innovation experts from the region at the Technology Agency of the Czech Republic in Prague to share achievements and best practices, as well as to look into different experiences from specific countries. For example, in Bulgaria the Bank is involved in innovation work through Strategy for Smart Specialization; in Romania, the Bank helped flesh out Competitiveness Enhancement and Smart Specialization Policies in the West Region; and in Serbia, the Bank is supporting the Serbia Innovation Project. Among the key recommendations identified at the workshop were a need to shift the focus from inputs to outputs, improve the business environment in these countries, and ensure adequate and effective monitoring and evaluation. Suggestions for achieving these goals included reducing the public sector’s aversion to risk, linking public funding with results, switching to demand-driven support, importing skills from abroad when necessary, using independent evaluators to avoid conflict of interest, and increasing feedback from policymakers.By incorporating best practices from other countries and designing specific recommendations from lessons learned, policymakers can better design specific interventions to boost innovation. Building on broader experience in Europe can help countries create sustainable policies that take a multifaceted approach toward innovation – ensuring that when investment for innovation takes place, it is done as efficiently and effectively as possible. Show Less -

WASHINGTON, November 10, 2014 - On November 4, 2014, the World Bank Group announced the debarment of Mr. Steven Nederhorst, a Dutch national, together with any entity that is an Affiliate directl... Show More +y or indirectly controlled by Mr. Nederhorst, including but not limited to Elmcrest Group Limited, formerly Landmarc Limited, for a period of six years for engaging in corrupt and fraudulent practices relating to the Dar ElSalaam Water Supply and Sanitation Project in Tanzania. “This particular case demonstrates the range of our efforts to ensure that World Bank-financed projects are executed with quality and integrity,” said Leonard McCarthy, World Bank Integrity Vice Presidency. The World Bank investigation, which spanned five countries in Africa and Europe, revealed evidence of kickback payments totalling USD 172,700 by Mr. Nederhorst and his joint venture partners, Norconsult AS of Norway and MMK Project Services Limited of Tanzania, and its owner, Mr. Munawer Khalfan to win and implement a World Bank-financed construction supervision contract. Evidence also included several fraudulent reference sheets and a forged power of attorney to win a World Bank-financed construction supervision contract. Earlier this year, the World Bank Group announced a six month debarment of Norconsult and a debarment of MMK Project Services Limited for a period of 5.5 years following decisions by the World Bank Group’s independent Sanctions Board relating to the same project. Mr. Steven Nederhorst’s debarment qualifies for cross-debarment by other MDBs under the Agreement of Mutual Recognition of Debarments that was signed on April 9, 2010.About the World Bank Integrity Vice PresidencyThe World Bank Integrity Vice Presidency (INT) is responsible for preventing, deterring and investigating allegations of fraud, collusion and corruption in World Bank projects, capitalizing on the experience of a multilingual and highly specialized team of investigators and forensic accountants. Show Less -

In a meeting with President Margvelashvili, Ms. Tuck discussed the importance of strengthening Georgia’s strategic role as a transit country, improving competitiveness, attracting investment, and tack... Show More +ling unemployment.“We have strong collaboration with Georgia and value the Government’s commitment to the next generation of structural reforms targeting jobs growth and inclusion,” said Laura Tuck. “We continue working with Georgia to further develop our strong partnership in infrastructure and to assist the country in its efforts to become a logistics hub in the region. Georgia has several comparative advantages, such as its geographic location, agriculture and tourism potential, and, most of all, its talented people. Developing and using these assets will create further opportunities for growth and make the country’s economy more inclusive.” In a meeting with private sector representatives, participants exchanged views on the current economic situation, investment climate, reforms under the ambitious Georgia 2020 socio-economic reform strategy, DCFTA and the Association Agreement with EU, and the challenge of finding people with the required skills. The opportunities and challenges for job creation in Georgia were also discussed during the meeting with students and faculty at the International School of Economics at the Tbilisi State University.Civil society organizations shared their views with regard to environmental and social safeguards, capacity building of civil society organizations, including in monitoring and evaluation, transparency and access to data, and greater civic participation in the decision-making process.Ms. Tuck also went to the Kakheti region, where she met with the local authorities and visited various sites under the Regional Development Project supported by the World Bank. The visit to Kakheti provided an opportunity to see firsthand the transformation of peoples’ lives through infrastructure rehabilitation, support to small and medium businesses, and development of tourism.She also visited the Agara-Ruisi section of the East-West Highway, the construction of which is financed by the World Bank, and an IDP settlement in Shavshvebi built with the Bank’s support.During a visit to the Customs Clearance Zone, Ms. Tuck observed the efficiency improvements in the customs processes. It was noted that in the past several years Georgia Customs significantly strengthened governance and successfully implemented anti-corruption measures.At the Social Service Agency in Tbilisi, Ms. Tuck viewed how the targeted social assistance program operates, including actions to facilitate beneficiary identification and access, and improvements in the social assistance database.Since Georgia joined the World Bank in 1992, a total of 62 projects comprising approximately US$ 2.27 billion of IDA credits and grants and IBRD loans have been provided to the country. The current portfolio consists of eleven active investment projects and one development policy operation for a total of around US$ 848 million. Show Less -

BUCHAREST, November 6, 2014 — Romania needs to develop deeper and more liquid financial markets in order to sustain economic growth, according to World Bank Group experts at a capital markets conferen... Show More +ce in Bucharest today.The conference was co-hosted by the World Bank Group and Romania’s Financial Supervisory Authority (ASF). It was attended by thirty representatives of the banking sector, regulatory agencies, pension funds, and the government who discussed trends in Romania’s economic growth and the role of capital markets in financial reform and private sector financing."As the main regulatory body for Romania’s capital markets, we advocate for a regulatory framework that is sound, flexible, and attractive to issuers and investors,” said Mișu Negrițoiu, ASF President. “We are working towards this goal, and we welcome the partnership and support of the World Bank Group in this effort.”Participants also addressed the different roles of government and non-government bond markets. They discussed how to create a regulatory framework and a capital market infrastructure that encourage issuers and investors to access markets while safeguarding investors.“Romania’s capital markets have an essential role to play in sustaining economic growth,” said Bahar Alsharif, Deputy Treasurer of the International Finance Corporation (IFC). “Financial sector reforms that promote deeper capital markets will encourage greater international and domestic investments in the country, supporting private sector development and job creation.”The World Bank, through the First Fiscal Effectiveness and Growth Development Policy Loan, supports reforms to improve the functioning of capital markets in Romania. The World Bank also provides advisory support to ASF in its institutional reform effort, in order to modernize and deepen the securities, pension, and insurance markets, as well as to promote the adoption of regulatory and supervisory standards that adequately identify risks and mitigate problems in these sectors, while avoiding an over-bearing regulatory burden. IFC will continue to support the strengthening of Romania’s capital markets as an active bond investor.About the World Bank GroupThe World Bank Group plays a key role in the global effort to end extreme poverty and boost shared prosperity. It consists of five institutions: the World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Working together in more than 100 countries, these institutions provide financing, advice, and other solutions that enable countries to address the most urgent challenges of development. For more information, please visit www.worldbank.org, www.miga.org, and ifc.org. Show Less -

What, then, does this all mean for the World Bank’s shared prosperity agenda in Poland and other countries in Central and Eastern Europe?First, in this period of an ever-increasing supply of educ... Show More +ated youth entering a labor market defined by high unemployment, the availability of adequate jobs continues to be an obstacle for workers throughout the country.As pointed out by European Commission Economist Paolo Pasimeni during the workshop, long-term unemployment has been proven to destroy skills developed during formal education and previous jobs. In an economy where skills matter more and where technology changes faster than in other industries, people outside of the workforce will be penalized even more than they might have been in the recent past. Furthermore, how long people remain unemployed, as well as what people do while unemployed, increasingly matters. Secondly, if Poland wants to maintain an edge in the future, when its cost-advantages may dwindle, it needs to invest today in the skills of the very young. According to Maciej Jakubowski, Assistant Professor of Economics at the University of Warsaw, this does not occur by simply putting a child in a classroom with computers. Rather, it requires a whole methodology to be put in place that is based on extensive human interaction.Training teachers capable of carrying out this necessary transformation is a challenge that Poland is preparing for, according to Polish Deputy Minister of Education Ewa Dudek, though it is far from resolved at this stage.As part of this workshop, Bill Mitchell, director of the UK-based BCS Academy of Computing, provided the opportunity to take a peek at how Britain is planning to carry out computer science education from early grades. Teaching programming skills to children may only ultimately still require a pen and a piece of paper, as education is fundamentally about enabling a person to visualize and solve complex problems faced by programmers. Hence, the “usual suspects” that have traditionally underlined education - math, literacy, and problem solving, coupled with creativity – will remain in fashion even in the era of ubiquitous programming.Fortunately, much of this learning can also be introduced by less traditional means, such as hackathons, as programmer Michał Mach demonstrated during a session that offered a peek at the lifestyle of IT developers.All of these insights help provide a roadmap for Poland and, taken collectively, can help the country address the challenges of tomorrow by focusing on solutions today. Show Less -

Baku, November 5, 2014 – World Bank Vice President for Europe and Central Asia Laura Tuck visited Azerbaijan on November 4-5. This was Ms. Tuck’s first visit to the country in her current capacity and... Show More + an opportunity to discuss with government officials and other stakeholders a range of issues concerning the country’s development and the World Bank Group’s ongoing and future partnership with Azerbaijan.During her visit, Ms. Tuck met with the President of Azerbaijan, the Prime Minister and other key government officials. She also met with representatives of the private sector and civil society, development partners, and media.“In the past decade, Azerbaijan has achieved impressive results in reducing poverty and improving living standards of its citizens,” said Laura Tuck during her visit. “We value our long-term partnership, which aims to ensure that the growth is sustained and benefits all people in the country. In my meetings with the authorities of Azerbaijan, we discussed the priorities for our future partnership strategy to further upgrade infrastructure, increase access to quality public services, such as health, education and water and sanitation, support environmental cleanup, and improve business environment.” During the meetings with both government and civil society stakeholders, Ms. Tuck discussed how Azerbaijan can find new drivers of growth and further diversify its national assets, such as infrastructure, institutions, and human capital. As the country aims to reduce its dependence on oil and gas revenues and become more resilient to volatility in commodity prices, diversification of assets becomes imperative. It was agreed that while Azerbaijan has made great advancement in modernizing its infrastructure, a lot remains to be done in the area of developing and strengthening its economic institutions, as well as investing in a healthy and skilled population.Further improving the business climate was also identified as a priority area to ensure growth of small and medium-sized enterprises, which are critical for job creation. Azerbaijan is among the top 10 countries in the world that have improved the most on the Doing Business indicators this year, and its overall ranking on the ease of doing business advanced from 88 to 80.“Azerbaijan has made good progress in improving the business climate, in particular in the areas of starting a business, registering property and paying taxes,” said Ms. Tuck. “However, there is a potential to further enhance and simplify legal and regulatory processes in such areas as trading across borders, getting access to electricity, getting credit, and obtaining construction permits, and we stand ready to continue supporting this important reform agenda.”Ms. Tuck visited several projects supported by the World Bank, including the Integrated Solid Waste Management Project and the Judicial Modernization Project. She also visited the ASAN Center, Azerbaijan’s best practice one-stop-shop for public services to citizens and businesses, and discussed with the authorities how the Bank can help in sharing Azerbaijan’s successful experience with other countries.The meeting with beneficiaries of the Azerbaijan Rural Investment Project (AzRIP) and the Minister of Agriculture of Azerbaijan marked the celebration of the 10th anniversary of the project. Representatives of rural communities shared the results of their small-scale community projects supported through AzRIP, including increased farm productivity, better village roads, and improved access to schools, healthcare and safe water. In particular, rehabilitation of farm-based irrigation systems has increased productivity by roughly 30 percent; improved village roads reduced travel time to schools and markets by 47 and 26 percent respectively; 150,000 rural residents now have access to safe water. Since inception, the project has provided support to 1,100 rural communities with about 3.5 million people.“It’s inspiring to see how the project has not only helped to improve infrastructure, but also empowered rural communities to participate in making decisions and implementing projects that are important to their livelihoods,” said Laura Tuck.The current World Bank investment portfolio in Azerbaijan includes 18 projects. Since joining the World Bank in 1992, commitments to the country have totaled over US$ 3 billion for 55 projects. Show Less -

Forto began farming his current plot following the cessation of hostilities in the region in the late 1990s. He began growing tomatoes and several other crops on a small scale before expanding his ope... Show More +rations – building more greenhouses and hiring one employee.When the floods struck in 2010, however, Forto found that much of his newfound success had been washed away.“You realize that what brings bread to the table has been destroyed,” he remembers. “It was really, really difficult. “Recognizing that immediate assistance and significant resources would be necessary for Sudo Forto, along with countless others who depend on agriculture production for their livelihoods, to rebound quickly in the wake of such a disaster, the World Bank, in coordination with the government, worked to restructure an existing Agriculture and Rural Development Project in order to make funds immediately available to allow victims like Forto to begin the long and arduous task of rebuilding. “You don’t believe anyone will help,” remembers Forto, “however, we received a lot of support.”Along with help he received from friends and neighbors, Sudo Forto also received necessary supplies and equipment from the Bank’s project to begin rebuilding. This help came in the form of new greenhouses, irrigation barrels, plastic to cover crops and build greenhouses, and a number of irrigation hoses.“We were motivated by all the help we received,” recounts Forto, “and we recovered fast – in about a year.”With the onset of the more recent round of flooding in the region this year, the World Bank Group is again working with its partners in the country to help all those impacted by these floods to recover as quickly as Forto did. In June, a $100 million Floods Emergency Recovery Project was approved for the country, which focuses on the areas most affected by these floods.These emergency response efforts are also being bolstered by more long-term projects designed to both avoid and mitigate the impacts of future natural disasters, including the Drina Flood Protection Project, designed to improve flood management in the towns of Bijelijna and Goražde.Collectively, this work is designed to better ensure that floods, landslides, and other natural disasters are averted if and when possible. They are also designed to provide maximum support to victims in the unfortunate event that they do occur. Show Less -

Minsk, November 4, 2014 – Representatives of the World Bank and the Government of the Republic of Belarus presented the Public Expenditures and Financial Accountability (PEFA) Assessment for Belarus 2... Show More +013. The report prepared by a team of World Bank experts assesses the strengths and weaknesses of the public financial management system using internationally accepted PEFA framework. The report aims to build a shared understanding of public financial management (PFM) performance and priority areas for improvement.The assessment was carried out in response to a request from the Government, and in close collaboration with the Ministry of Finance and other Government agencies. It aims to contribute to the Government’s objective of optimizing public expenditures with a focus on achieving better results and raising efficiency in the use of public funds.“The report provides a general understanding of the public financial management performance and aspects of the system in need of improvement and will contribute to the design of the Government Public Finance Management Reform Strategy,” noted Mr. Maksim L. Ermolovich, Deputy Minister of Finance of the Republic of Belarus.Public Expenditure and Financial Accountability Assessment (PEFA) is an indicator-based instrument used for evaluating public financial management performance and for tracking reform progress over time. It is based on 28 indicators clustered in 6 modules covering the last 2-3 fiscal years.Belarus scored well under 14 out of 28 PEFA indicators. Main performance improvements compared to 2009 assessment include increased public access to key fiscal information; improved transparency of taxpayer obligations and liabilities; extended coverage of the treasury single account and stronger controls over loans and guarantees; modernized legal basis for intergovernmental fiscal relations. Despite a very volatile macro-economic environment during the period covered by the assessment (2010-2012), the strong treasury function and control structure effectively helped the Government to maintain aggregate fiscal discipline. However, macroeconomic instability undermined reliability of revenue and expenditure forecasts resulting in significant revenue and expenditure deviations compared to approved budgets. It also affected negatively the time provided to the ministries, departments and agencies to prepare their detailed budget requests as well as the timeline of legislative review of the annual budget.“The assessment highlights the strengths of the current Belarusian public finance system and indicates areas where improvements would be useful, including policy based budgeting, budget transparency, oversight of aggregate fiscal risks, inter-governmental fiscal relations, public sector accounting standards, procurement, internal financial controls and audit, external oversight. This is potentially a huge and long-term reform agenda. We hope our analysis helps the Government in further work on identification of priority actions for PFM reform strategy,” noted Ms. Elena Nikulina, Senior Public Sector Specialist and PEFA Task Team Leader.The analysis demonstrated that there is high level of use of information systems in the PFM processes, relatively strong control over the payroll, debt and guarantees which together with strong culture of compliance and ex-post controls results in high accuracy and completeness of treasury transactions. The annual budget process is orderly and clear procedures exist for the legislature’s budget review.At the same time, the report highlights the need for stronger oversight of aggregate fiscal risks resulting from operations of public enterprises, taking into account their significance for Belarus economy. Another important area for improvement is strengthening the policy and strategic focus of the budget process through development of medium term budgeting. Legislative changes to the national planning framework that are being considered may facilitate a move in that direction.The public financial management system at present is focused more on compliance control than on efficiency and effectiveness of service delivery. The ongoing modernization of the procurement system promises improvements in the quality and cost effectiveness of procurement for goods and services. Recent introduction of the elements of performance auditing is also encouraging and has a potential to draw more attention to the issues of efficiency and effectiveness of service delivery.“The assessment has contributed to a substantive dialogue on the public financial management performance, particularly on areas that require improvements to ensure efficient and transparent use of public funds. Based on the key findings of the PEFA report, the World Bank has been working closely with the Authorities in designing a comprehensive PFM modernization project in Belarus,” noted Mr. Young Chul Kim, World Bank Country Manager for Belarus.Since the Republic of Belarus joined the World Bank in 1992, lending commitments to the country have totaled US$1.14 billion. In addition, grant financing totaling US$25 million has been provided to programs, including those with civil society organizations. The current investment lending portfolio includes five operations for a total amount of US$648 million. Show Less -

The latter problem was a barrier which needed to be resolved swiftly and reasonably in order to put Albania’s energy sector in order. A protracted legal battle over sector governance would... Show More + have been an insurmountable obstacle in attracting new investment to the sector—including investment financed by the World Bank. I want to commend the Government for understanding the urgency of resolving this dispute and for moving with speed to begin addressing the most pressing problems of the sector. Fixing the power sector is one of the most important foundations for increased investment, growth and job creation in Albania. Unreliable power supply is seen as a top constraint to doing businesses here. Today, cumulative losses in the energy sector—which are financed by Government--total some 55 billion lek. That amount would be expected to rise above 80 billion lek by 2018 if serious reform is not undertaken now. That is 80 billion lek that otherwise could be spent by Government to finish priority roads, improve the quality of education or procure essential drugs. So it isn’t just about business: fixing the power sector is necessary so that Government can redirect resources toward priority public services like education, health and water supply.The historic problem of the Albanian power sector—including the so-called CEZ dispute—has been a lack of accountability. How can the sector sustain itself if half the electricity is stolen? How can citizens trust their Government if public agencies don’t pay their own bills? Mutual accountability is the key to finally turning around Albania’s bankrupt and inefficient energy sector. Government must be held accountable for investing wisely in the sector, paying its bills to power utilities, pursuing those who steal electricity and protecting the poor and elderly through a well-targeted energy safety net. Utilities must be held accountable for reliable and affordable service delivery. And households and firms must be held accountable for using energy efficiently and for paying for what they use. I am encouraged by recent reforms aimed at clamping down on abuses of the system and instilling a culture of accountability. Maintaining an arbitrary threshold of 300 Kilowatt Hours has served only to fuel abuse by both households and businesses. The decision to move to a unified tariff for all household use is commendable, as is Government’s allocation of resources to an improved safety net that ensures access to energy for the poor, disabled and elderly. Early reforms are already producing results: collection rates have increased and losses have declined from 45 percent in early 2013 to around 35 percent today. In India, Northern Delhi Power and Light was able to reduce losses from above 50 percent to less than 15 percent over several years. If India can do this, so can Albania!Reforms will need to be sustained for the next four to five years. The $150 million Power Sector Recovery Project signed here today will support Government with medium-term investments and technical advice to reduce losses, improve governance and restore investor confidence in the sector. Confidence in the financial sustainability of the sector is the key to unlocking billions of dollars of investment in Albania’s hydropower potential. Increasing generation capacity will gradually reduce reliance on imports and lower the cost of providing electricity to consumers.Putting the power sector on a sustainable path is an essential element in creating a business environment that is attractive to investors and generates jobs for young Albanians. But it doesn’t stop there. Government has also begun reforms to bring a mediocre business environment up to global standards. In the World Bank’s 2015 Doing Business Report launched last week, Albania rose for the first time into the top half of the global ranking for ease of doing business. Albania rose 40 places in one year, thanks to reforms in starting a business, registering property and obtaining construction permits. Albania still has significant work to do in areas such as land titling and contract enforcement—but it has been a promising showing over the past year, and complements nicely the work underway in the energy sector.Investors also expect a stable and well-managed macroeconomic and fiscal environment. This is an area where Government has shown considerable courage in confronting the severe imbalances that emerged after the Eurozone crisis and which have hindered economic recovery in Albania. Stabilizing public debt, clearing public arrears, reducing fiscal deficits, reforming pensions and improving public service delivery are creating the conditions for higher private investment and growth. International ratings agencies have upgraded Albania based on Government’s commitment to this medium-term macro-fiscal stabilization. This year alone, Government has cleared 26 billion lek in arrears, with another 9 billion expected by year’s end. Economic growth is now on the rise which should continue if reform momentum is maintained.I am seeing notable progress in the past 14 months on some of Albania’s highest priorities. Much has been accomplished, and—even more importantly—the momentum for further reform is strong. Albania has become a leading reformer in the Balkans, and the granting of EU candidate status reflects this increasing momentum. It speaks to the relationship of trust that is emerging between Government and citizens, and to a sense of mutual accountability for building Albania’s future within Europe. As we see in the Balkans and beyond—delaying reform only exacerbates difficult problems, increases the pain of adjustment and undermines economic recovery and future prosperity. So, please, embrace reform today. Show Less -

Ashgabat, November 2, 2014 – On November 1-2, the Government of Turkmenistan jointly with the World Bank Group organized a high-level conference on Monetary Policy, Competitiveness and Economic Growth... Show More +, which coincided with the Turkmen Manat day – anniversary of introduction of the national currency of Turkmenistan.The event was attended by high-level officials from the Government of Turkmenistan, including Cabinet of Ministers, Central Bank and a number of Ministries, such as Finance, Economy and Development, Railway Transportation, Communication, Education, Labor and Social Protection. Representatives from the private sector and other development partners also attended the event. The World Bank Group was represented by the World Bank Chief Economist for the Europe and Central Asia region; IBRD and IFC Regional Directors for Central Asia; several Managers of Global Practices and technical experts. The conference also benefitted from knowledge of international experts, who were invited as speakers and panelists. The main objective of the two-day conference was to acquaint the Turkmen officials with the global knowledge and experience. The conference also allowed the representatives of the World Bank Group and development partners to learn from the authorities about the strategic directions of the Government of Turkmenistan in the areas of economic development and diversification, and to exchange views on how the World Bank Group and other development partners could further assist the authorities with the reform agenda.The conference focused on a wide range of topics pertaining to economic competitiveness and growth. Over two days, the sessions explored important issues and brought global knowledge and international examples in areas such as allocative and operational efficiency in public spending; development of banking financial services; policy tools for enhancing competitiveness; skills development and innovation in support of competitive industries; links between connectivity and competitiveness; and approaches to competitive and resilient agro-food industry. The sessions were facilitated and delivered by experts from the World Bank Group, as well as representatives of the Turkmen Government, IMF, EBRD and other partners.“This high-level event is a result of close engagement between the Government of Turkmenistan and the World Bank Group, especially during the past two years”, said Saroj Kumar Jha, World Bank Regional Director for Central Asia. “The World Bank Group teams worked hard to ensure that Turkmen partners benefit from the extensive global experience in the areas of competitiveness and economic growth as these topics are important for the Turkmenistan development agenda. We hope that the ideas discussed will help Turkmenistan to diversify the economy away from hydrocarbons with increasing participation of the private sector. That will be necessary if Turkmenistan is to achieve higher living standards, ensure employment opportunities for a rapidly growing population, and become more economically integrated with the rest of the world.This conference is part of the ongoing Interim Strategy of the World Bank Group and Turkmenistan for fiscal years 2014-15. The purpose of the interim strategy, which does not involve lending, is to assist the government in addressing selected priority issues related to the country’s development goals through provision of analytical and advisory services in the areas jointly identified by the government and the World Bank Group. This approach reflects the findings of extensive consultations with key stakeholders, including the government, private sector representatives, civil society organizations, development partners, and others. Show Less -

This paper examines support for reducing
inequality and for income redistribution to specific groups
in Europe and Central Asia. The paper uses the Life in
Transiti... Show More +on Survey to analyze cross-country differences in
redistributive preferences and the determinants of
individual-level differences in such preferences. The
analysis tests for various possible motivations, such as
self-interest, beliefs about the fairness of the
income-generating process, past social mobility experience,
or expectations of future social mobility. Fewer people
wanted to reduce the gap between the rich and the poor in
2010 than in 2006 in transition countries. Support for
redistribution toward specific groups is highest for the
disabled and the elderly, but there is high heterogeneity
across countries in support for various redistributive
policies, as well as in the alignment between average
beliefs and actual policies. The empirical analysis confirms
the importance of beliefs about fairness in influencing
redistributive preferences, together with self-interest and
past and expected social mobility in European Union member
states (Western European and new member states), but only to
a limited extent in the non-European Union member state
group of transition countries. Regarding redistribution to
specific groups, self-interest appears to be an important
motivation for support for the elderly and families with
children, whereas values and beliefs are important drivers
of support for the working poor and the unemployed. Although
framing matters, the results are broadly robust to
alternative measures of support for reducing inequality. Show Less -

The purpose of the Labour Force Survey
in Kosovo is to provide statistical data on labour market
indicators and enable comparisons to be drawn with previous
years. ... Show More +The methodology and definitions applied in the LFS
are the same as those used in 2012 and is consistent with
Eurostat regulations. The LFS survey includes 600
Enumeration Areas throughout the territory of Kosovo where
4,800 households are interviewed. This Labour Force Survey
2013 report contains data on employment and unemployment by
age, gender, employment status, economic activities,
occupations and other areas of the labour market. At the end
of the report section 6 reports on changes of the main
indicators between 2012 and 2013. Overall there have not
been any dramatic changes, which is to be expected. The
unemployment rate has remained virtually unchanged between
2012 and 2013 and it remains higher among women than men.
The unemployment rate is higher among young people. Kosovo
continues to exhibit challenging labour market performance
despite a continued growth rate. Kosovo is one of the
transition countries least affected by the global economic
crisis, however if the economy slows down this complicates
the task of generating new jobs that are needed each year in
order to meet the growing number of new entrants into the
labour force. Show Less -

RZECZPOSPOLITA, Interview with Marina Wes, World Bank Country Manager, Poland and the Baltic CountriesBy Danuta Walewska, October 29, 2014Rzeczpospolita: Poland ranks quite well in the “Doing Business... Show More +” (“DB”) report published today. What are the reasons for that?Marina Wes: This is indeed the case. Poland ranks 32nd in terms of ease of doing business, ahead of other countries in the region – Slovakia, the Czech Republic, Hungary. It is worth noting, that Poland has also ranked higher than a number of EU countries from outside the region. This proves, that the changes are on the right track. If we keep in mind that 189 countries were assessed for the purposes of the ranking, Poland’s result is really good.Rzeczpospolita: Where should we seek reasons for that? Did other countries slow down their business environment reforms, or did Poland accelerate them?Marina Wes: Poland has indeed embarked upon important reforms in three specific areas, however it was similar in previous years. Results we see today come from accumulation effect.Rzeczpospolita: If we compare ease of doing business in Poland and in countries we compete with for investments, what specifically are we better at?Marina Wes: “Doing Business” is not intended for foreign investors, although it is used as a resource containing information about legal regulations. That is why we know that entrepreneurs often use our report as credible source of information. So if a country is doing well in our ranking, it does have an impact on volume of investment.Rzeczpospolita: To what does Poland owe the good ranking?Marina Wes: The team preparing “DB 2015” has noticed three important reforms. First pertained to access to electricity, with lower cost of connection. Second – to registering property: it was made significantly easier, which also led to reduction of notary fees. Third: making export easier thanks to launch of a new terminal in Gdansk. This shows, how meticulously changes in business environment are analyzed using the new report methodology.I would also like to emphasize, that changes in business environment are not a sprint, but a marathon. Poland has been improving business environment conditions for the past five years. You have been implementing important reforms year after year. Two years ago, Poland was even the fastest reformer of business environment globally. Some of the reforms had to settle in before they could translate to investment climate.Rzeczpospolita: What should Poland do to rank better next year?Marina Wes: When we look at individual indicators, it is very clear what needs to be improved in Poland, and urgently, too. To me personally, the most shocking one was the construction permits indicator, where Poland ranked 137th among 189 countries. However I know, that a new Construction Code is being prepared – at final stages actually – that will fundamentally change the regulation. Another indicator is registering a business. Here, Poland ranks 85th and simplifying business registration is one of main priorities for Polish authorities.The third indicator is paying taxes. For this one, Poland ranks 87th, but – unless I’m wrong – new tax ordinance is being prepared. Improvement in those three areas is particularly important for business climate in Poland. It may also further advance the country in the ranking.Rzeczpospolita: We are just about to begin the elections series, though, which is not the best time for reforms. Aren’t you concerned that those necessary – although simple – actions could become significantly more difficult because of politics?Marina Wes: Structural reforms always suffer due to political cycles, although some are more sensitive to politics than others. However, we believe that in your case the reforms are not at risk. I cannot imagine that even during an election campaign anyone could question the benefits of a simplified procedure for business registration, and such a change is expected by the end of this year.Rzeczpospolita: Methodology of preparing the ranking has changed. Do you believe we would have been less successful if previous methodology was still in place?Marina Wes: I have not seen such comparisons. It is however beyond doubt that Poland has implemented important reforms, and it is visible in our ranking, even though “DB” is relative and place in the ranking depends not only on what the given country did, but on what the other countries did as well. Let’s go back to the marathon I mentioned, namely the distance between a country and the business ideal. Here we can see that Poland has improved its position from 73,36 points to 73,56 points. It’s as if a runner completed the marathon in less time than others. We don’t know what Poland’s place in the ranking would be if the old methodology was retained, but one thing is very clear: Poland has accelerated the reforms. And that’s the important thing. Show Less -

Washington, D.C., October 29, 2014—A new World Bank Group report finds that 85 percent of economies in Europe and Central Asia implemented at least one regulatory reform aimed at making it easier for ... Show More +local entrepreneurs to do business in 2013/14, a larger percentage than in any other region.Doing Business 2015: Going Beyond Efficiency shows that in the past year, economies in Europe and Central Asia further improved the regulatory environment for local entrepreneurs, adding to the gains recorded in the past decade. For example, 10 years ago, starting a new business took a Macedonian entrepreneur 48 days. Today, the process can be completed in 2 days.“Economies in Europe and Central Asia have consistently led the world in the pace of regulatory reform,” said Rita Ramalho, Doing Business report lead author, World Bank Group. “Governments’ commitment to improving the regulatory environment for entrepreneurs has allowed them to close the gap with the top performers in some areas. For example, the average time to register property in the region has fallen by 14 days since 2010, making the process faster than in OECD high-income economies.”Doing Business finds that Azerbaijan and Tajikistan were among the top improvers worldwide in 2013/14 in the areas of business regulation measured by the report. Challenges continue in both countries, however. For example, obtaining an electricity connection takes longer for entrepreneurs in these two countries than it does for their counterparts in most other economies in Europe and Central Asia.Singapore again tops the global ranking on the ease of doing business. Joining it on the list of the top 10 economies with the most business-friendly regulatory environments are New Zealand; Hong Kong SAR, China; Denmark; the Republic of Korea; Norway; the United States; the United Kingdom; Finland; and Australia.Challenges persist across the region’s economies even as the regulatory framework for entrepreneurs continues to improve, emphasizing the need for further regulatory reforms. This is particularly so in such areas as construction permitting, getting electricity, and trading across borders, all areas in which the region’s economies are in the bottom half of the global ranking on average.This year, for the first time, Doing Business collected data for a second city in the 11 economies with a population of more than 100 million. In the Russian Federation, the report now analyzes business regulations in both Moscow and St. Petersburg. Differences between cities are common in indicators measuring the steps, time, and cost to complete regulatory transactions where local agencies play a larger role, finds the report.This year the report expands the data for three of the ten topics covered, and there are plans to do so for five more topics next year. In addition, the ease of doing business ranking is now based on the distance to frontier score. This measure shows how close each economy is to global best practices in business regulation. A higher score indicates a more efficient business environment and stronger legal institutions.The application of the new methodology in this year’s report has not significantly affected the ranking of countries, and the same methodology was retroactively applied to last year’s data to measure progress. In the case of FYR Macedonia, the country remains among top performers globally on the ease of doing business, improving its ranking from the 31st place last year (recalculated using the new methodology) to the 30th place in this year’s report. The country has also moved closer to the best global practice, a more important measure of progress than the ranking as it does not depend on the relative performance of other countries.The new “distance to frontier” measure shows how well each economy is doing in relation to the global best practice, highest performance observed on each of the indicators across all economies measured in Doing Business. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represent the frontier. According to the Doing Business Report 2015, FYR Macedonia’s score is 74.1 percent, which is a 1.4 percentage points’ improvement from 2014. FYR Macedonia made starting a business easier by making online registration free of charge. Minority investor protections were strengthened by requiring prior review of related-party transactions by an external auditor. In addition, resolving insolvency is now easier thanks to the establishment of a framework for electronic auctions of debtors’ assets, streamlining and tightening the time frames for insolvency proceedings and the appeals process, and a framework for out-of-court restructurings.About the Doing Business report seriesThe annual World Bank Group flagship Doing Business report analyzes regulations that apply to an economy’s businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, and resolving insolvency. The aggregate ease of doing business rankings are based on the distance to frontier scores for 10 topics and cover 189 economies. Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure the quality of fiscal management, other aspects of macroeconomic stability, the level of skills in the labor force, or the resilience of financial systems. Its findings have stimulated policy debates worldwide and enabled a growing body of research on how firm-level regulation relates to economic outcomes across economies. Each year the report team works to improve the methodology and to enhance their data collection, analysis and output. The project has benefited from feedback from many stakeholders over the years. With a key goal to provide an objective basis for understanding and improving the local regulatory environment for business around the world, the project goes through rigorous reviews to ensure its quality and effectiveness. This year’s report marks the 12th edition of the global Doing Business report series. For more information about the Doing Business reports, please visit doingbusiness.org and join us on doingbusiness.org/Facebook.About the World Bank GroupThe World Bank Group plays a key role in the global effort to end extreme poverty and boost shared prosperity. It consists of five institutions: the World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Working together in more than 100 countries, these institutions provide financing, advice, and other solutions that enable countries to address the most urgent challenges of development. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org. Show Less -

Washington, D.C., October 29, 2014—A new World Bank Group report finds that 85 percent of economies in Europe and Central Asia implemented at least one regulatory reform aimed at making it easier for ... Show More +local entrepreneurs to do business in 2013/14, a larger percentage than in any other region.Doing Business 2015: Going Beyond Efficiency shows that in the past year, economies in Europe and Central Asia further improved the regulatory environment for local entrepreneurs, adding to the gains recorded in the past decade. For example, 10 years ago, starting a new business took a Macedonian entrepreneur 48 days. Today, the process can be completed in 2 days.“Economies in Europe and Central Asia have consistently led the world in the pace of regulatory reform,” said Rita Ramalho, Doing Business report lead author, World Bank Group. “Governments’ commitment to improving the regulatory environment for entrepreneurs has allowed them to close the gap with the top performers in some areas. For example, the average time to register property in the region has fallen by 14 days since 2010, making the process faster than in OECD high-income economies.”Doing Business finds that Azerbaijan and Tajikistan were among the top improvers worldwide in 2013/14 in the areas of business regulation measured by the report. Challenges continue in both countries, however. For example, obtaining an electricity connection takes longer for entrepreneurs in these two countries than it does for their counterparts in most other economies in Europe and Central Asia.Challenges persist across the region’s economies even as the regulatory framework for entrepreneurs continues to improve, emphasizing the need for further regulatory reforms. This is particularly so in such areas as construction permitting, getting electricity, and trading across borders, all areas in which the region’s economies are in the bottom half of the global ranking on average.This year, for the first time, Doing Business collected data for a second city in the 11 economies with a population of more than 100 million. In the Russian Federation, the report now analyzes business regulations in both Moscow and St. Petersburg. Differences between cities are common in indicators measuring the steps, time, and cost to complete regulatory transactions where local agencies play a larger role, finds the report.The report this year expands the data for three of the 10 topics covered, and there are plans to do so for five more topics next year. In addition, the ease of doing business ranking is now based on the distance to frontier score. This measure shows how close each economy is to global best practices in business regulation. A higher score indicates a more efficient business environment and stronger legal institutions.The report finds that Singapore tops the global ranking on the ease of doing business. Joining it on the list of the top 10 economies with the most business-friendly regulatory environments are New Zealand; Hong Kong SAR, China; Denmark; the Republic of Korea; Norway; the United States; the United Kingdom; Finland; and Australia.Serbia’s ranking in Doing Business 2015 dropped from 77 to 91 - taking into account data revisions and methodology changes. Serbia recorded no reforms easing the regulatory framework in 2013/14. In addition, it made transferring property more difficult. Given that 65% of the economies worldwide recorded reforms making business easier in 2013/14, other countries overtook Serbia on the ease of doing business. The complete data for Serbia is in the annex.Across indicators, Serbia’s rankings did not change much compared to Doing Business 2014, taking into account data revisions and methodology changes, except for registering property where the country’s rank went from 48 to 72. This is largely due to the elimination of the expedited procedure for registering a property transfer.Compared to the publish rankings in Doing Business 2014 (93), there is a slight improvement in the ranking for Serbia (91) compared to the previous year. The expansion of several indicators this year (resolving insolvency, protecting minority investors and getting credit) had a considerable positive impact on the ranking for Serbia, which was partially offset by the way the ranking is now computed. Serbia performs better in the new areas being measured than in the old ones and for that reason the ranking under the new methodology improved.Since 2005, Serbia has undertaken a total of 18 reforms easing business regulations – in comparison to a global average of 12 reforms per economy during that timeframe. Moreover, Serbia has reformed in all the areas covered by Doing Business – save for protecting minority investors and getting electricity. In the past decade, Serbia’s reforms have targeted both legal institutions and the complexity of regulatory processes. This has translated into considerable time gains for entrepreneurs in Serbia.Starting a business took 56 days for a budding entrepreneur in Serbia 10 years ago; now that process requires just 12 days—less than in Finland.Less than five years ago, a Serbian entrepreneur seeking a loan could not review his own financial historical data, and could therefore not assess properly his financial options. Today, thanks to a Law passed in 2008 on personal data protection that guarantees that borrowers can review their own data, Serbian businesses can now access their information.In 2005, it took 33 days for a Serbian entrepreneur to export her goods overseas. Today, this time has been cut to 12 days – just one more day than in Japan.While we see that Serbia continues to improve regulatory practices, the fact that the country’s ranking is 91 highlights that there is still work to be done. For instance, the cost of obtaining construction permits (26% of the value of the warehouse that is built) is the highest in all of Europe & Central Asia. Similarly for paying taxes, Serbian entrepreneurs face a total of 67 payments per year to comply with tax regulations, the most in all of Europe.About the Doing Business report seriesThe annual World Bank Group flagship Doing Business report analyzes regulations that apply to an economy’s businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, and resolving insolvency. The aggregate ease of doing business rankings are based on the distance to frontier scores for 10 topics and cover 189 economies. Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure the quality of fiscal management, other aspects of macroeconomic stability, the level of skills in the labor force, or the resilience of financial systems. Its findings have stimulated policy debates worldwide and enabled a growing body of research on how firm-level regulation relates to economic outcomes across economies. Each year the report team works to improve the methodology and to enhance their data collection, analysis and output. The project has benefited from feedback from many stakeholders over the years. With a key goal to provide an objective basis for understanding and improving the local regulatory environment for business around the world, the project goes through rigorous reviews to ensure its quality and effectiveness. This year’s report marks the 12th edition of the global Doing Business report series. For more information about the Doing Business reports, please visit doingbusiness.org and join us on doingbusiness.org/Facebook.About the World Bank GroupThe World Bank Group plays a key role in the global effort to end extreme poverty and boost shared prosperity. It consists of five institutions: the World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Working together in more than 100 countries, these institutions provide financing, advice, and other solutions that enable countries to address the most urgent challenges of development. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org. Show Less -

For instance, it takes 277 days on average for an enterprise to connect to electricity grid in the capital city of Kyiv. This is among the highest time in the world, only five economies require more t... Show More +ime. Similarly, the cost and time to import and export in Ukraine are among the highest in the region. For example, in Ukraine, it costs US$1,880 for an entrepreneur to export a standard container overseas, while in Albania it only costs US$745.For the first time, Doing Business collected data for two cities in the 11 economies with a population of more than 100 million. This year’s report also expands the data in three of the 10 topics covered, with further plans to expand on five additional indicators in next year’s report. The Doing Business rankings are now based on the distance to the frontier measure. Each economy from the 189 economies measured is evaluated based on how close their business regulations are to the best global practices. A higher score indicates a more efficient business environment and stronger legal institutions.The report finds that Singapore tops the global ranking on the ease of doing business. Joining it on the list of the top 10 economies with the most business-friendly regulatory environments are New Zealand; Hong Kong SAR, China; Denmark; the Republic of Korea; Norway; the United States; the United Kingdom; Finland; and Australia.About the Doing Business report seriesThe annual World Bank Group flagship Doing Business report analyzes regulations that apply to an economy’s businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, and resolving insolvency. The aggregate ease of doing business rankings are based on 10 indicators and cover 189 economies. Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure the quality of fiscal management, other aspects of macroeconomic stability, the level of skills in the labor force, or the resilience of financial systems. Its findings have stimulated policy debates worldwide and enabled a growing body of research on how firm-level regulation relates to economic outcomes across economies. Each year the report team works to improve the methodology and to enhance their data collection, analysis and output. The project has benefited from feedback from many stakeholders over the years. With a key goal to provide an objective basis for understanding and improving the local regulatory environment for business around the world, the project goes through rigorous reviews to ensure its quality and effectiveness. This year’s report marks the 12th edition of the global Doing Business report series. For more information about the Doing Business reports, please visit doingbusiness.org and join us on doingbusiness.org/Facebook.About the World Bank GroupThe World Bank Group plays a key role in the global effort to end extreme poverty and boost shared prosperity. It consists of five institutions: the World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Working together in more than 100 countries, these institutions provide financing, advice, and other solutions that enable countries to address the most urgent challenges of development. For more information, please visit www.worldbank.org, www.miga.org, and ifc.org. Show Less -

Washington, D.C., October 29, 2014—A new World Bank Group report finds that in the past year, the Russian Federation made it easier for local entrepreneurs to do business by implementing regulatory re... Show More +forms in the areas of starting a business and registering property.Released today, Doing Business 2015: Going Beyond Efficiency finds that in the past year, the Russian Federation made it easier for entrepreneurs to open a new business by eliminating the requirement to deposit the charter capital before company registration as well as the requirement to notify tax authorities of the opening of a bank account. In addition, the country made transferring property easier by eliminating the requirement for notarization and introducing tighter time limits for completing the property registration. Such efforts have contributed to making Europe and Central Asia the second most business-friendly region after high-income economies in the Organization for Economic Co-operation and Development (OECD).The Russian Federation ranks among the top 20 economies globally on two indicators: the ease of registering property and the ease of enforcing contracts. Obstacles remain in some areas measured by the report, however: entrepreneurs seeking to obtain an electricity connection or to import or export goods face considerable delays compared with global averages.“The business regulatory environment requires strong and sustained actions across all areas covered by the report as well as those not directly measured,” said Michal Rutkowski, World Bank Country Director for the Russian Federation . “It is encouraging that the Russian Federation continues its upward trajectory in improving the investment climate thanks to the implementation of regulatory reforms; however, a broader approach should be taken in the coming years to ease the burden for local entrepreneurs.”This year, for the first time, Doing Business collected data for a second city in economies with a population of more than 100 million. In the Russian Federation, the report now analyzes business regulations in St. Petersburg as well as Moscow. The data show that regulatory quality and efficiency are comparable in the two cities, with Moscow and St. Petersburg sharing similar laws and similar times, costs, and procedures for regulatory processes across the areas measured by the report.The report this year expands the data for three of the 10 topics covered, and there are plans to do so for five more topics next year. In addition, the ease of doing business ranking is now based on the distance to frontier score. This measure shows how close each economy is to global best practices in business regulation. A higher score indicates a more efficient business environment and stronger legal institutions.The report finds that Singapore tops the global ranking on the ease of doing business. Joining it on the list of the top 10 economies with the most business-friendly regulatory environments are New Zealand; Hong Kong SAR, China; Denmark; the Republic of Korea; Norway; the United States; the United Kingdom; Finland; and Australia.About the Doing Business report seriesThe annual World Bank Group flagship Doing Business report analyzes regulations that apply to an economy’s businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, and resolving insolvency. The aggregate ease of doing business rankings are based on the distance to frontier scores for 10 topics and cover 189 economies. Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure the quality of fiscal management, other aspects of macroeconomic stability, the level of skills in the labor force, or the resilience of financial systems. Its findings have stimulated policy debates worldwide and enabled a growing body of research on how firm-level regulation relates to economic outcomes across economies. Each year the report team works to improve the methodology and to enhance their data collection, analysis and output. The project has benefited from feedback from many stakeholders over the years. With a key goal to provide an objective basis for understanding and improving the local regulatory environment for business around the world, the project goes through rigorous reviews to ensure its quality and effectiveness. This year’s report marks the 12th edition of the global Doing Business report series. For more information about the Doing Business reports, please visit doingbusiness.org and join us on doingbusiness.org/Facebook.About the World Bank GroupThe World Bank Group plays a key role in the global effort to end extreme poverty and boost shared prosperity. It consists of five institutions: the World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Working together in more than 100 countries, these institutions provide financing, advice, and other solutions that enable countries to address the most urgent challenges of development. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org. Show Less -